Read the following scenario carefully; and provide your answer as required.

A bond is on sale in the market under the following conditions.

Face Value: $15,000;

Current Price Index: 80;

Interest Rate: 10%;

Maturity: 3 years from now

1. If you buy it now, what is the price you are paying? Provide your answer to the nearest dollar. Do NOT include "$" or "," in your answer. If your answer is $10,000; then just put 10000 for your answer.

2. Your analysis of the company turns out a little pessimistic. Your perceived risk (=your required rate of return on your investment) is 15%. In other words, the price you want to pay for this bond should yield 15% of ROI each year for you including the Maturity amount (=FV of $15,000 in 3 years). What amount should you pay for this bond if you purchase it? You must use the concept & technique of the Yield-to-maturity in this question. Provide your answer to the nearest dollar. Do NOT include "$" or "," in your answer. If your answer is $10,000; then just put 10000 for your answer.